The City of Punta Gorda and the family of Mary Knowlton have reached agreement on a settlement in the accidental shooting that killed Knowlton during a Citizen Police Academy event in August.

City Manager Howard Kunik said the settlement totals $2,060,234, with $2 million coming from their insurance policy - that is the maximum amount the policy can pay out.

The other $60,234 comes directly from the city to cover any of the family's legal fees, medical fees or court filings. That money comes from the Damage Recovery Fund, which is typically used for things like hurricanes.

“We respect the Knowlton family for their willingness to work with us and reach this agreement,” Kunik said in a statement. “We feel it is the right thing to do. We continue to respect the process the FDLE and State Attorney are going through.”

Mary’s husband Gary Knowlton signed the agreement, and the city council is expected to approve the settlement Wednesday.

The incident happened in August when Mary, 73, was randomly chosen to participate in a “shoot or don’t shoot” scenario at the city’s Citizen Police Academy. The exercise simulates using lethal force in a live role play.

The gun the officer in the simulation used was loaded, and Knowlton was shot during the exercise. She was pronounced dead at the hospital.